By: Max S. Escajadillo
The Dollar and Euro are the two most known and highest value currencies. However, as technology and the internet have become a part of today’s generation, new currencies, such as the Bitcoin, have been created to fit into today’s technological advancements.
Bitcoin is a new form of anonymous currency that was created in 2009 by a man named Satoshi Nakamoto (no records of him are to be found but he is supposedly of Japanese decent). Before Bitcoin, many other forms of internet currency existed, but they had massive downfalls and didn’t last.
The goal of Nakamoto’s Bitcoin project was to liberate people’s money from the circulating banks and governments. The Bitcoin system solved problems regarding financial security. For example, with Bitcoins, individuals are able to hold onto their actual money, transfers to someone are instantaneous worldwide since there are no transaction fees, it’s anonymous, and Bitcoins cannot be counterfeited. There’s a total number of Bitcoins and no more can be created, so it’s either you own some Bitcoins or you don’t. Nakamoto’s system had a way of finding out any transfer without revealing your personal information, so Bitcoin mining became very popular.
Even with many benefits it provides, Bitcoin has one controversial issue. Because of its anonymous property and no limits, Bitcoins could be used by criminals to transfer money to other countries without the risk of getting caught or having their account frozen.
At their start, Bitcoins had no value at all as currency, but by 2010 more investors started trading and its value raised to 14 cents per Bitcoin and after a few months it raised to 36 cents. By 2013, its value is now at 66 dollars, making investors who had bought thousands of Bitcoins when they were only 14 cents wealthy now.
As mining became a popular way of acquiring Bitcoins, competition increased drastically. Nowadays, more and more people are entering the Bitcoin mining arena and even invest in expensive computers specifically for mining purposes.
Bitcoins are today’s alternative to the current economic system and we can only wait to see the results in the upcoming years. Another event to watch out for is whether Bitcoins plan to stay out of government control will succeed to maintain the benefit it provides. Bitcoin surely has taken the internet and technology by surprise.